According to 2003 research from advisers' body IFA Promotion over 62,000 people will die "intestate" each year, meaning without having made a will. If you have no living relatives, or these cannot be traced, the money will go to the government.

Co-habiting is an increasingly popular option among people of all ages - but those who are not married are particularly vulnerable if they do not have a will. Mary O'Hara looks at why co-habitees in this situation need the protection offered by spelling out their wishes in a formal legal document.

Gifts made in the seven years before your death can be subject to inheritance tax, but a number are exempt from tax. A list of these can be found in the leaflet, 'An introduction to Inheritance Tax' from the Inland Revenue.

Thinking about what will happen to your property and possessions when you die is not exactly fun. Neither is sitting through meetings with tax planners and solicitors to make sure they get distributed according to your desires. But the alternative is bequeathing, at worst, nothing, and at best, a protracted, drawn out battle with tax authorities over who should get what.